Navigating the UK Consumer Sector: Leadership Talent as a Strategic Asset in 2025

The UK consumer sector is at a critical juncture in 2025, shaped by economic uncertainty, evolving consumer behaviours, and technological advancements. Businesses need leadership that can navigate these challenges and capitalise on emerging opportunities. In this environment, the demand for strong leadership in areas like finance, business transformation, and HR is higher than ever.

The UK consumer market is diverse, with several key sub-sectors experiencing rapid transformation:

• Retail: E-commerce continues to reshape retail, now accounting for 27.9% of total retail sales (ONS, 2024). Retailers must innovate their omnichannel strategies to stay competitive.
• Food & Beverage: Ethical consumption is on the rise, with demand for sustainable and plant-based products growing by 22% in the past five years (BRC). This trend pushes businesses to align their offerings with consumer values.
• Consumer Technology: The UK’s tech sector is expected to see continued growth, with global tech spend surpassing $4 trillion by 2025 (Gartner). As consumer tech adoption rises, so too does the need for leadership in innovation and product development.
• Automotive: With electric vehicle (EV) sales surging 70% in 2024, the automotive sector is under pressure to accelerate the transition to sustainable models. Leadership in this sector will need to manage this shift and meet consumer demand for greener technologies.
• Hospitality & Leisure: The UK’s hospitality sector is forecasted to grow by 7.5% annually through 2025 (Statista), driven by the recovery of tourism. However, rising costs continue to challenge businesses in this space.

Economic Challenges: The Role of Leadership in Adapting to Change

Several economic factors are reshaping the consumer sector:

• Inflation and Rising Costs: With inflation at 10.1% (2025), businesses face increased production costs. Strong CFOs and finance transformation leaders will be crucial in managing margins and optimising cash flow during these challenging times.
• Interest Rates and Consumer Confidence: Rising interest rates (5.25%, Bank of England, 2025) have dampened consumer spending. Companies need CPOs and HR leaders who can maintain employee engagement and minimise talent attrition, even in the face of economic stress.
• Global Supply Chain Disruptions: Nearly 63% of UK retailers are still facing supply chain disruptions (BRC). Effective leadership is essential to optimise operations and minimise costs in this uncertain environment.
• Global Trade and Tariffs: Trade tariffs, including those imposed by the US, have created volatility in UK exports. Strategic leaders who can pivot business models and mitigate risks are vital in adapting to these changes.
• Sustainability: With the global sustainability market expected to grow to $12.1 trillion by 2030, companies that fail to adapt to consumer demand for ethical products risk falling behind. Leaders focused on sustainability and business transformation will drive future success.

Talent as a Strategic Asset: Creating Opportunities Amidst Disruption

Amid economic volatility, talent is a key differentiator. The right leadership can help businesses turn challenges into opportunities:

• Financial Leadership: With economic uncertainty on the rise, CFOs and financial transformation experts will be pivotal in managing risks and ensuring financial stability. According to PwC’s UK CEO Survey, 67% of CEOs view managing economic uncertainty as a top priority for the next few years.
• Business Transformation: The need for transformation is paramount. Business transformation leaders will guide companies through organisational change and ensure they remain competitive. 85% of executives in a McKinsey survey said transformation is necessary to stay relevant in the next five years.
• HR Leadership: As workforce expectations evolve, CPOs will be essential in creating resilient organisations. According to Deloitte’s Global Human Capital Trends Report, 79% of HR leaders consider workforce transformation to be their most significant challenge.

How Potentia Partners Supports the Consumer Sector

At Potentia Partners, we help consumer businesses build leadership teams that can navigate these challenges effectively:

• Financial Leadership: We place CFOs who can manage financial complexity and drive performance under pressure.
• Business Transformation: Our search focuses on identifying leaders who can steer organisations through complex transformations and future-proof their operations.
• HR Leadership: We specialise in finding HR leaders who understand the evolving workforce and can cultivate employee engagement and resilience during times of change.

With our expertise in executive search, interim management, talent advisory, and succession planning, we help companies secure leadership talent that delivers both short-term impact and long-term growth.

A Strategic Partnership for Consumer Businesses

The UK consumer sector is facing a rapidly evolving landscape in 2025. By partnering with Potentia Partners, businesses can secure the right leadership talent to not only weather economic challenges but also to drive growth and innovation. If you’re looking to strengthen your leadership team, we’re here to help you find the executives who can turn disruption into opportunity.